Finding 1162747 (2023-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-11-20

AI Summary

  • Core Issue: CUAHSI did not keep proper records to verify that vendors were not federally debarred or suspended, leading to non-compliance with procurement policies.
  • Impacted Requirements: Compliance with 2 CFR sections 200.317-200.326 and related procurement regulations was not met, affecting transactions over $25,000.
  • Recommended Follow-Up: CUAHSI should enhance its procurement processes to ensure compliance and maintain documentation for vendor verification moving forward.

Finding Text

Federal agency name: U.S. National Science Foundation & U.S. Department of Commerce Federal program title: Geosciences, Computer and Information Science and Engineering, Office of International Science and Engineering & NOAA – Cooperative Institute AL No.: 47.050, 47.070, 47.079 & 11.432 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2023), EAR- 2244446 (03/01/2023 – 02/28/2026), OAC-2209833 (01/01/2023 – 12/31/2026), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2024), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026), OISE-1855654 (05/15/2019 – 12/31/2023) & A22NWS4320003 (08/01/2022 – 07/25/2025, 08/01/2022 – 07/25/2025, 04/01/2023 – 03/31/2024, 06/01/2023 – 05/31/2024, 06/01/2023 – 05/31/2026, 06/01/2023 – 05/31/2025, 06/01/2023 – 05/31/2025) Pass Through Entity: University of Alabama MW2023-002 PROCUREMENT, SUSPENSION AND DEBARMENT Material Weakness Criteria The requirements for this compliance requirement are contained in 2 CFR sections 200.317- 200.326; 48 CFR parts 03, 15, 44, and the clauses at 48 CRF sections 52.244-2, 52.244-5, 52.203-13, 52.203-16 and 52.215-12; agency FAR supplements; 2 CFR part 180; OMB M-18- 18; and the terms and conditions of the federal award. There is a requirement to verify that contractors in covered transactions or any of its vendors are not federally debarred, suspended, or excluded. A covered transaction is a nonprocurement or procurement transaction in excess of $25,000 that is subject to the prohibitions noted in 2 CFR part 180. The covered transaction may be at the primary tier, between a federal agency and a person or a lower tier between a participant in a covered transaction and another person. Condition CUAHSI failed to maintain and provide the proper records and support to document their review of vendor files for covered transactions. Such failure led to non-compliance with the procurement, suspension and debarment policies in accordance with the UG for the year ended December 31, 2023. CUAHSI did not complete the verification of its 2023 vendors until 2024. Based on our testing, no contractors in covered transactions were deemed to be federally debarred, suspended or excluded. Cause & Context CUAHSI has a policy in place to meet the procurement requirements but there was no evidence of compliance with that policy. Effect As a result of noncompliance, there could be possible repayment of funds and / or possible suspension or debarment. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2022-006. Recommendation CUAHSI should ensure that, to the extent practicable, the use of a competitive procurement process in compliance with 2 CFR section 200/317. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.

Corrective Action Plan

Statement of Concurrence or Nonconcurrence: CUAHSI agrees with the finding and recommendation. CUAHSI Corrective Action: Action by CUAHS! impacting audit year 2023: Vendor status for 2023 recipients was retroactively evaluated by CUAHSI staff and certified by management during calendar year 2024. Records were organized and filed in a secure, centralized document management system. Corrective actions to processes and responsibilities impacting subsequent years: CUAHSI considers this finding closed, as current practices comply with established policies and procedures. Name of Contact Person: • Maureen S. Ako, Director of Finance • Telephone: (339)221-5400 • Email: msabino@cuahsi.org Projected Completion Date: NA; is complete

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1162734 2023-001
    Material Weakness Repeat
  • 1162735 2023-002
    Material Weakness Repeat
  • 1162736 2023-003
    Material Weakness Repeat
  • 1162737 2023-004
    Material Weakness Repeat
  • 1162738 2023-001
    Material Weakness Repeat
  • 1162739 2023-002
    Material Weakness Repeat
  • 1162740 2023-003
    Material Weakness Repeat
  • 1162741 2023-004
    Material Weakness Repeat
  • 1162742 2023-001
    Material Weakness Repeat
  • 1162743 2023-002
    Material Weakness Repeat
  • 1162744 2023-003
    Material Weakness Repeat
  • 1162745 2023-004
    Material Weakness Repeat
  • 1162746 2023-001
    Material Weakness Repeat
  • 1162748 2023-003
    Material Weakness Repeat
  • 1162749 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
47.050 GEOSCIENCES $3.65M
11.432 NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA) COOPERATIVE INSTITUTES $1.02M
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $376,326
47.079 OFFICE OF INTERNATIONAL SCIENCE AND ENGINEERING $25,407
43.001 SCIENCE $13,006